Credit Card for £5000 purchase or save cash for it? Dont knows for the best?

Any

Mozzyp wrote: »

I think ive been misunderstood here. I am not saying my grandfather should give me money, or loan me money or do anything regarding me and his money. I was merely pointing out to anyone who possibly wondered why, that obtaining this sum form my grandfather wasnt an option, hence why im doing this on my own. I was just using him as an example as to why i didnt think the results of the Experian process could be total non-sense. Not all to sure why i feel the need to defend myself here but just for the record, i have never asked, nor received money from my grandfather..

NO, the answers were a reaction to your statement "he likes his money more then his family", which seemed unnecesary and unfounded.
There was no need to explain why would you not borrow money from your grandpa in the first place.

Mozzyp wrote: »

Like i said above, the reason i would like the money sooner rather than later is because its for a medical operation which im having to get done priavtely as the NHS, as of 2 years a go, no longer fund this particular surgery. My condition is certainly not life threatening, but it does cause and create numerous issues with my health and well being..

You don't need to reason why you want the loan either. I agree there is lots of self-rightous people on here who bang on about never using money you don't have, but this is a site about advising people on how to get/deal with credit cards, not to lecture them about how debt/credit cards are evil, which is not true. Just because they have low selfcontrol:D... (said in Tongue in cheek, hope everyone understands..)

Mozzyp wrote: »

I feel this conversation is starting to a bit off topic now so i guess the next step is for me to see what i can get and acheive. I will get in touch with my bank and other financial institutions to see what i can get. If anyones interested i shall repost with how i got on.

So thank you once again for all your advice and input in to my matter.

Do not just go out and apply for everything and anything!!!!!!!
That can do more damage then good. Every company will search your file and that will leave mark on your report. Next searching company will see this and think that you are desperate/maybe even in trouble financially.
You need to have some system to the application process.

Who do you bank with?

Mozzyp

At the end of the day all i wanted was some advise from people who have been through similar situations. I didnt want to bring my personal life or family matters in to this. Im sorry it came across that way, and looking back at it, it was too much info which has shown me in a negatiove light, but it was meant in a light hearted way. These things are often misinterpreted in text.

I bank with Barclays. Have done for 15 years and 1 month. The maximum pre-approved loan i can get form them is now £11,000 (thought it was less). I wish to borrow £5,000, however when i look into this through my online banking they give me an interest rate of 20.9% and wont allow me to repay this over anything shorter than 36 months. I thought a credit card would be a better option for paying this fee and paying £100 every week (which im currently doing and can survive just fine by doing so). I dont mind using a loan but only if i can get a good interest rate, such as one of these 7.9% ones.

Or maybe i should just top my grandad??.....kidding!

shop-to-drop

Try Zopa Mozzyp. Then you can over pay to pay back as quick as you like. See what interest rate they will give you. Nothing wrong with paying a bit of interest if you can afford it and it's for something important. Minimise interest to pay of course but sometimes it's worth paying it to have the benefit of something now.

Any

Hmm... Barclaycard have card for 12 mths 0% on purchases, have a look
http://www.barclaycard.co.uk/barclays_landing/platinum750.html?TC=BAR0330019

Read up on the "best suited for" Do you fulfill the criteria... given you are with them 15 yrs I would personally probably at least try to get it..

If nothing, they will offer you Initial card - which is with high APR and newbies to credit history are the target customer here - I would take it and spend a bit on it (regular purchases such a fuel) and pay in full every month to at least get on with building some rating..

Mozzyp

Yeah, for the convinience of being able to use that money now i wouldnt mind paying a bit of interest, but when im paying in excess of £1000-2000 more over the course of the loan i dont think its a very prudent move. Never heard of Zopa. Will look into it. Thank you

izools

Mozzyp wrote: »

Yeah, for the convinience of being able to use that money now i wouldnt mind paying a bit of interest, but when im paying in excess of £1000-2000 more over the course of the loan i dont think its a very prudent move. Never heard of Zopa. Will look into it. Thank you

Zopa are very strict however - the underwriters will expect to see on your credit file many years history of flawlessly managing a variety of credit products.

Unfortunately I don't see you ever getting low APR loans or 0% credit cards until you've proven to the lenders that offer these products, that you are able to handle credit responsibly.

Whilst you won't be able to procure the credit you are looking for now, I think it is a clear sign that you should indeed start to build a credit history for yourself so that you are eligible for such deals in the future.

Everyone has to start somewhere and you may never get sub 10% loans or 0% credit cards if you don't bite the bullet and start building a credit history with some easy-to-acquire cards like the Barclaycard Initial, Capital One Classic, or some such.

Good luck :beer:

Mozzyp

Last night i went through the application process of that card online and i got to the last page where you agree to the T&C's and make it a legally binding contract and i bailed. i was hoping for the final page to tell me everything about the card, primarily the max spending limit. It seemed odd to me that they would make me agree to the Credit card without letting me know what i could get with it? There's little point in me getting a credit card if its only got a £1000 max limit. I might as well not bother. But i know that would gain credit score. but for the time being im looking into financing this particular purchase and a card with a low limit wouldnt be any good for me right now as i'd still have to get some sort of finance, and i imagine applying for a credit card AND a loan in the space of a week would look very bad!

lisyloo

Can afford to pay it off within a year

What happens if you

Die (maybe not a problem if no-one else is afffected by the debt)
Get sick long term (do you have income protection?)
Get made redundant
Have an accident which means you can't work and pay back the debt.

I'm not trying to be negative (or maybe I am), but lots of people don't think of the "rainy day" scenarios and just assume their income will continue.
None of us can be sure our income will continue, so you need to have plans in place. One way to get round these risks is insurance but it's not the only way.

Any

Mozzyp wrote: »

Last night i went through the application process of that card online and i got to the last page where you agree to the T&C's and make it a legally binding contract and i bailed. i was hoping for the final page to tell me everything about the card, primarily the max spending limit. It seemed odd to me that they would make me agree to the Credit card without letting me know what i could get with it? There's little point in me getting a credit card if its only got a £1000 max limit. I might as well not bother. But i know that would gain credit score. but for the time being im looking into financing this particular purchase and a card with a low limit wouldnt be any good for me right now as i'd still have to get some sort of finance, and i imagine applying for a credit card AND a loan in the space of a week would look very bad!

No company will ever give you limit before you get the card!!! Don't even think you will be able to get it from anyone before you sign on doted line.

It is time to start building some history anyway, so to refuse card just because it gives you £1k limit is going to get you nowhere...

izools

Mozzyp wrote: »

and i imagine applying for a credit card AND a loan in the space of a week would look very bad!

No.

Two applications in any six month period won't impact your credit worthiness in the slightest.

My flat mate has been approved for four credit cards and a new current account in the space of one month this month.

As long as you keep it to 3 or fewer in any six month period you can rest assured the number of applications you're making aren't impacting the decision a creditor makes.

Like I said, I know, and you know, that a high APR card with a sub-grand limit won't be useful for the purchase you want to make now but if you don't start to build a credit history for yourself you may never be able to obtain sub-10% finance or 0% credit card deals.

You wouldn't want to be in the same position five years time because you didn't take the plunge now, would you?